The Middle East Economy

Kuwait can look back on 2011 as a year characterised by higher than expected oil revenues and developmental progress despite domestic political wrangling and turmoil in the global market.

Looking to better times in 2012 after a challenging 12 months that saw Bahrain’s economy lose some of its momentum, the Kingdom is seeing signs that several key sectors are moving quickly to recover lost ground in the New Year.

With forecasts predicting solid economic growth in 2011 and a political system that remained stable in spite of unrest rocking much of the Middle East, Oman looks set to see increased investor interest in the coming years.

Having ended 2011 on a high, with its economy growing at break-neck speed, inflation under control and a stepped-up programme of infrastructure investments being rolled out, Qatar is well placed to continue similar growth this year. Yet with the spectre of recession hanging heavy in the air in Europe, and a scaling back of expectations in some major Asian economies, the country may find that in 2012 many of its achievements are consolidated rather than eclipsed.

Key elements of Abu Dhabi’s economic diversification programme, including the development of the emirate’s manufacturing base, are moving ahead as planned, with the government reiterating its commitment to encourage investment and diversification.

Political and economic reforms promised for 2012 are expected to improve Jordan’s business environment and restore confidence after a challenging year.